Why are some places developed and other places lagging behind? An analysis of 295 Chinese cities

Zhaoyang Cai, Yang Li and Shixiong Cao ()
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Zhaoyang Cai: Minzu University of China
Yang Li: Minzu University of China
Shixiong Cao: Minzu University of China

The Annals of Regional Science, 2025, vol. 74, issue 1, No 9, 26 pages

Abstract: Abstract There are huge differences in the levels of social and economic development among the world’s regions, and the gaps between regions have not narrowed despite rapid economic development. Understanding the impact of factors other than political factors on socioeconomic development can help all countries to find solutions that go beyond ideology. To test this hypothesis, we selected 295 Chinese cities at the same administrative level and used the entropy weighting method, a spatial econometric model, and a geographical and temporal weighted regression model to identify the reasons for regional development differences. Unlike the methods used in previous studies, this approach let us identify the relative importance of many forces that are simultaneously driving development and their variation among regions. We found that industrial upgrading, industrialization, fiscal decentralization, marketization, and education were important factors to promote regional economic growth, whereas economic growth decreased with increasing elevation and environmental pollution. These were the primary factors that explained why some places were more highly developed and other places lagged behind. To narrow the regional development gap, it will be necessary to upgrade a region’s industrial structure, improve market mechanisms, improve the education system, and implement targeted and differentiated development policies that account for each region’s unique needs. Our results will provide a reference not only for China but also for the world to support efforts to eradicate poverty and achieve more regionally balanced development.

JEL-codes: C33 O11 P25 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00168-024-01335-5

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